The Commonwealth of Dominica has been operating a citizenship by investment programme since 1993, making it the second Caribbean island-nation to launch one such programme – having been preceded by the Federation of St Kitts and Nevis.
The Dominica Citizenship by Investment Programme, sometimes referred to as the Dominica Economic Citizenship Programme, is framed within Section 101 of the Constitution of the Commonwealth of Dominica, the Commonwealth of Dominica Citizenship Act 1978, and the Commonwealth of Dominica Citizenship by Investment Regulations 2014 (and amendments).
Under the Programme, an investor can acquire citizenship of Dominica upon the payment of a one-time contribution to the Economic Diversification Fund, or through the purchase of a government approved project – generally a real estate development – and the payment of associated Government fees.
The '''Citizenship by Investment Programme''' in Dominica has not only facilitated individuals in obtaining citizenship but has also significantly contributed to the nation's infrastructural revival. This contribution was particularly crucial following the two devastating natural disasters that impacted the island in recent history.
In 2015, Tropical Storm Erika wreaked havoc on the island, causing substantial damages to both property and infrastructure. The devastation was compounded in 2017 when the Category 5 Hurricane Maria ravaged the island. However, the funds accumulated through the Citizenship by Investment Programme emerged as a beacon of hope for the nation's restoration efforts.
In 2023, the government revoked the citizenship of 260 individuals for providing false information on their applications. This was a crucial measure by the government to uphold the integrity of the citizenship application process and ensure that only those meeting the necessary requirements are granted citizenship.
Leveraging the financial influx from this initiative, Dominica embarked on major infrastructural developments and restoration projects. This proactive approach underscored the resilience of the Dominican people and highlighted the significance of investment programmes in aiding nations during post-disaster recovery phases.
Investment Options Applicants can choose to directly support the nation's Economic Diversification Fund (EDF), a non-refundable contribution that funds various development projects. Alternatively, they can invest in pre-approved real estate projects, ensuring not just citizenship but also an asset. Each option comes with its own set of financial commitments.
Economic Diversification Fund The Economic Diversification Fund (EDF) is first investment option which supports socio-economic initiatives with the aim of driving national development. All money generated for the EDF goes towards improving projects in the public and private sector which are in need of financial support. These include building schools, renovating hospitals, and the creation of a national sports stadium, as well as a variety of other undertakings across numerous industries such as tourism, information technology and agriculture.
To qualify for Dominican citizenship through the Citizenship by Investment program, applicants must make a non-refundable contribution to the EDF.
US$100,000 for the main applicant; US$150,000 for the main applicant and spouse; US$175,000 for the main applicant and up to three dependants; US$25,000 for any additional applicant;
Real Estate To qualify for Dominican citizenship under the real estate option applicant must purchase authorised property worth at least USD $200,000. Real estate must be held for either three years from the date of citizenship is granted or, if the future purchaser is also a citizenship by investment applicant, five years from the date of citizenship is granted.
If application for Dominica citizenship by real estate investment is approved, the following government fees may apply: US$25,000 for the main applicant; US$35,000 for the main applicant and up to three dependants; US$50,000 for the main applicant and up to five dependants; US$25,000 for any additional qualified dependant; The official website of the Citizenship by Investment Unit has a list of properties where an investor can invest under the real estate option.
Due Diligence The Programme mandates that all applicants over the age of 16 undergo a comprehensive due diligence background checks, which includes a mandatory interview, usually conducted virtually. This detailed scrutiny aims to validate the authenticity of the data and information presented by applicants during their application submission.
The thoroughness of this process entails completing all official forms, undergoing a medical examination, and gathering specific supporting documents such as full page passport copy, birth certificate, education history, source of funds, 2 professional references, fingerprints and complete medical reports. Applicants must ensure that all submitted paperwork is in English and is accompanied by the necessary notarisation and legalisation to meet the set criteria.
In order to facilitate an all-encompassing evaluation, the Dominican Government charges an added fee of USD 7,500 for the main applicant, USD 4,000 for a spouse and USD 4,000 for any dependents aged 16 or above designated specifically for due diligence purposes. The due diligence fee is directly redirected to renowned third-party vetting agencies situated in the US and UK.
These agencies employ a rigorous approach to scrutinising an applicant's current status and history, both online and in-person. Key components of their evaluation method include on-site visits to the applicant's home and work properties. Additionally, these agencies collaborate with local establishments such as police, municipalities, and hospitals to confirm the validity of submitted documents.
The applicants are also required to provide financial details of the past ten years. These records are inspected to ensure that the investment funds are legitimate. The examination extends to determining whether an applicant is politically exposed and involves matching their profile with international criminal databases, including organizations like Interpol, CIA, FBI and others.
Mandatory Interview In a progressive move, Dominica has recently set a precedent among nations offering CBI. The country has instituted a policy whereby every applicant aged 16 or over is required to participate in an interview as an integral component of the extended due diligence procedure. This step is more than just a formality; it offers an opportunity to further gauge the applicant's credibility through direct engagement.
Change of Name In 2023, the Dominica government implemented new rules on name changes for CBI applicants. Under the new rules, CBI applicants are only allowed to change their names after they have maintained residency in Dominica for the prescribed period of time. This period of time is currently set at three years.
The Dominica Government made this change in order to address concerns about the potential for abuse of the CBI programme. Some people have used the CBI programme to obtain a new identity and escape from criminal prosecution or financial obligations. The new rules are designed to prevent this from happening.
Due Diligence Steps The due diligence process for a CBI application is designed to assess the applicant's suitability for the programme and to mitigate any risks to the CBI country. The process typically includes the following steps:
Initial review of the application: The first step is to review the applicant's application form and supporting documents to ensure that they meet the eligibility requirements for the programme. This includes verifying the applicant's identity, financial status, and source of funds. Background checks: The next step is to conduct a background check on the applicant. This may include checking for criminal records, financial sanctions, and any other negative information. Source of funds check: The applicant will also need to provide evidence of the source of their funds. This is to ensure that the applicant's investment is not derived from illegal activities. Interview: Every applicant aged 16 or over is also required to attend an interview with a due diligence officer. This interview is an opportunity for the officer to learn more about the applicant and their motivations for applying to the CBI programme. Reference checks: The due diligence officer may also contact the applicant's references to verify their information and get feedback on the applicant's character. Final review: Once the due diligence process is complete, the due diligence officer will prepare a report for the CBI Unit. The report will assess the applicant's suitability for the programme and make a recommendation on whether or not the applicant should be approved.
The decision-making system employed by the due diligence firms is inspired by the clarity of traffic lights. Here's how it works:
Red Signal: This is an immediate cause for concern. If, during the vetting procedure, any document appears questionable or a discrepancy emerges, the due diligence agency flags the application with a red signal. In layman's terms, this translates to a recommendation for decline, and as a result, the CBIU is likely to reject the application. Yellow Signal: This denotes caution and the need for further clarity. When the due diligence firm identifies potential gaps or requires additional documentation to complete the evaluation, they mark the application with a yellow signal. It implies the applicant needs to provide supplementary information or documents to facilitate further assessment. Green Signal: The best outcome an applicant can hope for, a green signal is an endorsement of the individual's application. It confirms that the provided information is accurate, every person under the application has been vetted positively, and they uphold a high moral and professional repute. Consequently, the CBIU receives a green signal as a go-ahead to approve the submitted application.
Dominica's Agreement to Implement the Six Principles On 25 February 2023, Dominica along with government representatives of Antigua and Barbuda, Grenada, Saint Lucia and St Kitts and Nevis, participated in a roundtable discussion with representatives of the US Government. The “Caribbean Five” and the US reached agreement on six principles. These principles encompass:
Mandatory Interviews: Enforcing compulsory interviews for certain procedures. Treatment of Denials: Implementing a structured approach to address application denials. Additional Checks: Incorporating extra vetting steps to ensure thorough evaluations. Audits: Regular inspections and checks to ensure transparency and uphold procedural integrity. Retrieval of Passports: Establishing protocols for the return of passports under designated circumstances. Treatment of Russians and Belarusians: Introducing specialized protocols for handling applications and processes concerning citizens of Russia and Belarus.
Dominica is the first of the five countries to have adopted and implemented these six principles.
The commitment to these principles not only fortifies Dominica’s own systems and frameworks but also paves the way as a model for other nations in their policy development and global interactions.
National Development Through Citizenship by Investment
Climate Resilient Housing in Dominica
In recent years, Dominica faced the devastating impacts of significant climatic events, notably Tropical Storm Erika in 2015 and the catastrophic Category 5 Hurricane Maria in 2017. The aftermath of Hurricane Maria alone translated to a staggering loss of over 226% of the nation's GDP.